The rupee declined for the second straight day to end at 63.58 against the dollar due to heavy capital outflows from the domestic equity market. BSE-benchmark Sensex plunged over 850 points (3 per cent) to close at 26,987. A slide in oil prices and political uncertainty in Greece weighed on stock markets across the globe. In addition, the American dollar strengthened against major Asian currencies. The domestic unit had closed at 63.42 on Monday. On Tuesday, the unit opened higher at 63.36 per dollar and strengthened to 63.31 after which it dropped to 63.66 tracking heavy losses in the equity market. Intra-day, the rupee moved between 63.31 and 63.66 per dollar range at the Interbank Foreign Exchange market.
Call rates and Bonds
The yields on the benchmark 8.40 per cent government security, which matures in 2024, remained flat from the previous close of 7.89 per cent. The price lowered a tad to ₹103.31 from ₹103.36. Bond prices and yields move in opposite directions. The inter-bank call money rates, the rates at which banks borrow from each other to overcome liquidity mismatches, closed softer at 7.50 per cent from Monday’s close of 9 per cent. During the day, the call money market moved in the range of 7 and 8.50 per cent range.